JOURNEY OF

SENSEX :
FROM
1K TO 21K
Money doesn't create
man but it is the man
who created money.
-Warren Buffet
What is capital market?
 Market Capitalization Trade Value
Economy Stock Exchange
(USD Billions) (USD Billions)

 United States New York Stock Exchang 11838 17521

e

 Japan Tokyo Stock Exchange 3306 3704

 United States NASDAQ 3239 13608

 Europe Euronext 2869 1935

 United Kingdom London Stock Exchange 2796 1772

 China Shanghai Stock Exchange 2705 5056

 Canada Toronto Stock Exchange 1677 1245

 India Bombay Stock Exchange 1307 264

 India National Stock Exchange 1225 792

Indian Economy and Capital Market at
a glance
 Second fastest growing economies after China with
an average annual growth rate of more than 8 per
cent in the last three years .
 GDP at current market prices is over US $778 billion .
 9040 brokers in cash segment and 1064 in derivative
segment of the market.
 122 investment bankers in the market.
 58 under writers to support primary issues.
 34 foreign venture capital funds .
 120 Portfolio managers .
Indian Economy and Capital Market at
a glance
 India has T+2 rolling settlement as opposed to
T+3 in NYSE.
 India has several protective safeguards for the
retail investor such as grading system of public
offering, retail quota at 25 per cent etc.
 Almost 100 per cent risk free electronic
settlement through depository system .
 SEBI has a surveillance and enforcement
system in place.
Snapshot of Indian Economy and Capital Market

 India - one of 10 fastest-growing population of HNWIs globally.

 There are at least 23 Indian citizens amongst the richest people on the
planet.
 Non Resident Indians can invest in all Indian Asset Classes.
 Salary increases in India – 13.9% is the highest in the world.
 Increasing Investment avenues – Art, Realty Funds, Commodities.
 The number of companies listed on the Bombay Stock Exchange, at
more than 6,000, is second only to NYSE.
 Each year 2,500 tonnes of gold is mined (fifth of the world's gold
output.) and 3,500 tonnes is consumed, of which 1,000 tonnes is
consumed in India alone.
JOURNEY STARTS….
 1000, JULY 25,1990

 2000, JANUARY 15,1992

 3000, FEBRUARY 29, 1992

 4000, MARCH 30,1992

 5000, OCTOBER 8,1999

 6000,FEBRUARY 11,2000

 7000, JUNE 20 ,2005

 8000,SEPTEMBER 8,2005
 9000, NOVEMBER 28,2005

 10000, FEBRUARY 6,2006

 11000, MARCH 21,2006

 12000, APRIL 20,2006

 13000, OCTOBER 30,2006

 14000, DECEMBER 5,2006

 15000, JULY 6,2007

 16000, SEPTEMBER 19,2007

 17000, SEPTEMBER 26,2007

 18000, OCTOBER 09,2007

 19000, OCTOBER 15,2007

 20000, DECEMBER 11,2007

 21000, JANUARY 8,2008

 Sensex at 20K – Time to turn
# cautious #
 An investor can normally expect return from the market as
sensex may go up to 21-22k range and Nifty to 6,200-6,500
points .
 It is imperative that investors should not indulge in
speculative trades in such a market.
 Our markets are therefore highly vulnerable and can face a
sharp about turn.
 The recovery from the August correction has been largely
fuelled by FII inflows.
 A large portion of these flows can be short-term in nature.